The Role of Artificial Intelligence in the Internal Audit Function

Document Type

Article

Publication Title

Journal of Theoretical Accounting Research

Abstract

As organizations strive to enhance operational efficiency and keep up with the fast-paced digital landscape, the integration of artificial intelligence in internal audits has emerged as an area worth focusing on. This paper examines the role of artificial intelligence in automating routine internal audit procedures, highlighting how efficiency can be enhanced. By analyzing existing literature, this paper identifies common internal audit procedures, including risk assessments, compliance checks, transaction testing, and data analysis that have traditionally been performed manually but are susceptible to automation through artificial intelligence tools. The benefits of employing artificial intelligence automation for these tasks are significant, as they result in increased productivity, reduction in human errors, and effective handling of extensive data, among others. This paper also addresses how the implementation of artificial intelligence faces obstacles, including high implementation costs, the need for specialized skills, accountability issues, and risks of algorithmic biases. Furthermore, the paper provides key take-aways to audit professionals, such as incorporating cost-benefit assessments, cultivating an adaptable mindset, fostering collaborations among functions, and ensuring quality data management. While the documented challenges herein are considerable, the efficient gains prompted by artificial intelligence suggest its increasing role in optimizing internal audit processes as both necessary and valuable for modern organizations.

Publication Date

2025

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